McCorey Corporation recorded the following events last year: On the statement of
ID: 2585675 • Letter: M
Question
McCorey Corporation recorded the following events last year:
On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities.
Based solely on the information above, the net cash provided by (used in) financing activities on the statement of cash flows would be:
Multiple Choice
$(216,000)
$(113,000)
$129,000
$263,000
Repurchase by the company of its own common stock $ 42,000 Sale of long-term investment $ 61,000 Interest paid to lenders $ 16,000 Dividends paid to the company's shareholders $ 71,000 Collection by McCorey of a loan made to another company $ 47,000 Payment of taxes to governmental bodies $ 26,000Explanation / Answer
Cash used in financing activity = Repurcahse of own stock + Interest paid + Dividend paid
= 42000 + 16000 + 71000
= 129000
Cash inflow from financing activity = Collection of loan made to another company = 47000
Net cash used in financing activity = - 129000 + 47000= -82000